Processing an amended return remains a manual process; however, including direct deposit information on an electronically submitted form provides a convenient and secure way to receive your refund faster. For more details, see Form 1040-X frequently asked questions.
Filing an amended return isn't particularly difficult, but there are a few things you should know about the process before getting started. It also helps to be familiar with some common occurrences that can trigger the need for an amended return.
There is no penalty for simply filing an amended return. But if your mistake caused you to underpay tax, you will owe that additional tax. If you amend your tax return before the April deadline and pay the remaining tax you owe, you won't have to pay a penalty.
You can easily find out the status of your Form 1040X, Amended U.S. Individual Income Tax Return, using the Where's My Amended Return? tool on IRS.gov or through the toll-free telephone line at 866-464-2050.
Allow 8 to 12 weeks for your amended return to be processed; however, in some cases, processing can take up to 16 weeks.
Here are a few possible factors that can cause delays, according to the IRS: Your amended return has mistakes, is incomplete or hasn't been signed. The IRS may have sent your return back to you, asking for more information. Your amended return includes Form 8379, Injured Spouse Allocation.
The IRS has formally stated that audits do not automatically follow an amended tax return. If the amended return results in a significant change in your favor, and the circumstances surrounding the change seem suspicious, the IRS likely will start an audit.
If you incorrectly claimed certain expenses to itemize your deductions or you accidentally included or left out a dependent, you should file an amended return to correct the errors. This could prevent problems later, like notices or an IRS audit.
Generally, the IRS can include returns filed within the last three years in an audit. If we identify a substantial error, we may add additional years. We usually don't go back more than the last six years. The IRS tries to audit tax returns as soon as possible after they are filed.
Average cost for amended tax return. The fee for filing an amended tax return can vary significantly, but a general range is between $200 and $1,500. Here is a more detailed breakdown of these costs based on different factors.
There are two options to correct or amend a return that you already submitted. Within the same business day as your original submission, email us at *CDTFA Motor Fuels eFile and we will cancel your original submission. You may then submit the new tax form when you have made the corrections or amendments.
High income
As you'd expect, the higher your income, the more likely you will get attention from the IRS as the IRS typically targets people making $500,000 or more at higher-than-average rates.
If you discover an H&R Block error on your return that entitles you to a larger refund (or smaller tax liability), we'll refund the tax prep fee for that return and file an amended return at no additional charge.
The IRS began accepting the Form 1040-X electronically in 2020 but until now did not offer direct deposit as an option for a refund. Following IRS system updates, those filing amended returns can now enjoy the same speed and security of direct deposit as those filing an original Form 1040 tax return.
An IRS notice may alert you to a mistake on your tax return or that it's being audited. You can verify the information that was processed by the IRS by viewing a transcript of the return to compare it to the return you may have signed or approved. You can access your tax records through your account.
Extra Paperwork: Amending your current tax return may require you to amend previous returns. Even a minor change may require you to report changes in other tax years, which may not be worth the hassle.
“The time frame the IRS has to reach out to you about certain mistakes can be anywhere from 3 years to forever,” Cagan explained. “Usually if there is a critical number that doesn't match, you won't even be able to e-file your tax return as it will bounce right back.” A critical number could be a W-2 you forgot.
You need to pay the new total amount you owe. Pay or update your payment plan . If it's after the due date, you may need to pay interest and penalties.
4. Amended Returns. Amended returns will probably generate closer scrutiny by the IRS. Filing an amended return, particularly if it results in a significant decrease in tax, is almost guaranteed to get a second look by the IRS.
6 years - If you don't report income that you should have reported, and it's more than 25% of the gross income shown on the return, or it's attributable to foreign financial assets and is more than $5,000, the time to assess tax is 6 years from the date you filed the return.
Taxable income that is not reported on your tax return is likely to trigger an IRS audit. Common kinds of unreported income include: Income from a hobby or side hustle. Freelance income.
You can check the status of an amended return around 3 weeks after you submit it. You should generally allow 8 to 12 weeks for your Form 1040-X to be processed. However, in some cases, processing could take up to 16 weeks.
Still, filing electronically can get your return delivered to the IRS more quickly than filing on paper, and direct deposit should speed things along once the refund is available.
Most CPAs, including myself, will generally charge 50% of our regular rate for an amended return. The reason being is that an amended return does not require the same amount of work as preparing a return from scratch. Instead, you are focused on a specific issue to fix/correct.